Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices 38151 

31 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3A ‘‘Market Maker’’ means a Streaming Quote 

Trader or a Remote Streaming Quote Trader who 

enters quotations for his own account electronically 

into the System. See Options 1, Section 1(b)(28). A 

‘‘Streaming Quote Trader’’ or ‘‘SQT’’ means a 

Market Maker who has received permission from 

the Exchange to generate and submit option 

quotations electronically in options to which such 

SQT is assigned. An SQT may only submit such 

quotations while such SQT is physically present on 

the trading floor of the Exchange. An SQT may only 

submit quotes in classes of options in which the 

SQT is assigned. See Options 1, Section 1(b)(54). A 

‘‘Remote Streaming Quote Trader’’ or ‘‘RSQT’’ 

means a Market Maker that is a member affiliated 

with an Remote Streaming Quote Trader 

Organization with no physical trading floor 

presence who has received permission from the 

Exchange to generate and submit option quotations 

electronically in options to which such RSQT has 

been assigned. A qualified RSQT may function as 

a Remote Lead Market Maker upon Exchange 

approval. An RSQT is also known as a Remote 

Market Maker (‘‘RMM’’) pursuant to Options 2, 

Section 11. A Remote Streaming Quote 

Organization (‘‘RSQTO’’) or Remote Market Maker 

Organization (‘‘RMO’’) are Exchange member 

organizations that have qualified pursuant to 

Options 2, Section 1. See Options 1, Section 

1(b)(49). 

4A ‘‘Lead Market Maker’’ means a member who 

is registered as an options Lead Market Maker 

pursuant to Options 2, Section 12(a). A Lead Market 

Maker includes a Remote Lead Market Maker which 

is defined as a Lead Market Maker in one or more 

classes that does not have a physical presence on 

an Exchange’s trading floor and is approved by the 

Exchange pursuant to Options 2, Section 11. See 

Options 1, Section 1(b)(27). 

5See Options 2, Section 5(c). 

6Options 2, Section 4(c) describes the required 

bid/ask differentials. 

7The term ‘‘member organization’’ means a 

corporation, partnership (general or limited), 

limited liability partnership, limited liability 

company, business trust or similar organization, 

transacting business as a broker or a dealer in 

securities and which has the status of a member 

organization by virtue of (i) admission to 

membership given to it by the Membership 

Department pursuant to the provisions of General 

3, Sections 5 and 10 or the By-Laws or (ii) the 

transitional rules adopted by the Exchange pursuant 

to Section 6–4 of the By-Laws. References herein to 

officer or partner, when used in the context of a 

member organization, shall include any person 

holding a similar position in any organization other 

than a corporation or partnership that has the status 

of a member organization. See General 1, Section 

1(17). 

8Options 2, Section 5(c)(2)(A). 

9An adjusted option series is defined as an option 

series wherein one option contract in the series 

represents the delivery of other than 100 shares of 

underlying stock or Exchange-Traded Fund Shares 

(‘‘Adjusted Options Series’’). See Options 2, Section 

5(c)(2)(A)(i). 

10Options 2, Section 5(c)(2)(A). 

11Options 2, Section 5(c)(2)(B). 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–Phlx–2021–40, and should 

be submitted on or before August 9, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–15186 Filed 7–16–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92393; File No. SR–Phlx– 

2021–38] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Options 2, 

Section 5, Electronic Market Maker 

Obligations and Quoting Requirements 

July 13, 2021. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on June 30, 

2021, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Options 2, Section 5, Electronic Market 

Maker Obligations and Quoting 

Requirements. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Phlx Rules at Options 2, Section 5, 

Electronic Market Maker Obligations 

and Quoting Requirements. Currently, 

the Exchange requires Market Makers 3

and Lead Maker Makers 4 to enter bids 

and offers for the options to which they 

are registered, except in an assigned 

options series listed intra-day on the 

Exchange.5 Quotations must meet the 

legal quote width requirements 

specified in Options 2, Section 4(c).6 On 

a daily basis, an electronic Market 

Maker must make markets consistent 

with the applicable quoting 

requirements. Market Makers (SQTs and 

RSQTs) associated with the same 

member organization 7 are collectively 

required to provide two-sided 

quotations in 60% of the cumulative 

number of seconds, or such higher 

percentage as Phlx may announce in 

advance, for which that member 

organization’s assigned options series 

are open for trading.8 Notwithstanding 

the foregoing, a member organization is 

not required to make two-sided markets 

pursuant to Options 2, Section 5(c)(2) in 

any Quarterly Option Series, any 

adjusted option series,9 and any option 

series with an expiration of nine months 

or greater.10 Lead Market Makers 

(including Remote Lead Market 

Makers), associated with the same 

member organization, are collectively 

required to provide two-sided 

quotations in 90% of the cumulative 

number of seconds, or such higher 

percentage as Phlx may announce in 

advance, for which that member 

organization’s assigned options series 

are open for trading. Lead Market 

Makers are required to make two-sided 

markets pursuant to Options 2, Section 

5 in any Quarterly Option Series, any 

Adjusted Option Series, and any option 

series with an expiration of nine months 

or greater.11 Finally, a Directed SQT or 


lotter on DSK11XQN23PROD with NOTICES1
38152 Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices 

12 Directed SQTs and Directed RSQTs, associated 

with the same member organization, are collectively 

required to provide two-sided quotations in 90% of 

the cumulative number of seconds, or such higher 

percentage as Phlx may announce in advance, for 

which that member organization’s assigned options 

series are open for trading. A member organization 

shall be considered directed in all assigned options 

once the member organization receives a Directed 

Order in any option in which they are assigned and 

shall be considered a Directed SQT or Directed 

RSQT until such time as the member organization 

notifies the Exchange that they are no longer 

directed. Notwithstanding the foregoing, a member 

organization is not required to make two-sided 

markets pursuant to this paragraph (c)(2) above in 

any Quarterly Option Series, any Adjusted Option 

Series, and any option series with an expiration of 

nine months or greater. A Directed Order means any 

order to buy or sell which has been directed to a 

particular Lead Market Maker, RSQT, or SQT by an 

Order Flow Provider. To qualify as a Directed 

Order, an order must be delivered to the Exchange 

via the System. See also Options 2, Section 10(a)(i). 

13See Options 2, Section 5(c). Today, the 

Exchange aggregates all quotes submitted through 

the Specialized Quote Feed interface from the 

member organization, regardless of whether the 

quote was submitted by the member organization in 

its capacity as Lead Market Maker or Market Maker. 

14The Exchange notes that pursuant to a 

restriction within Options 2, Section 4(b)(2), only 

an SQT can simultaneously quote as a Lead Market 

Maker and an SQT. Options 2, Section 4(b)(2) 

provides, ‘‘An RSQT may only submit quotations 

electronically from off the floor of the Exchange. An 

RSQT may not simultaneously quote both as RSQT 

and Remote Lead Market Maker in a particular 

security. If an RSQT is a Remote Lead Market Maker 

in a particular security, the Remote Lead Market 

Maker must make a market as a Remote Lead 

Market Maker and may not make a market as an 

RSQT in that particular security.’’ Because an RSQT 

cannot also be a Lead Market Maker, the Exchange 

proposes to delete ‘‘an RSQT’’ as part of its 

amendment to Options 2, Section 5(c). 

15 ‘‘Specialized Quote Feed’’ or ‘‘SQF’’ is an 

interface that allows Lead Market Makers, SQTs and 

RSQTs to connect, send, and receive messages 

related to quotes, Immediate-or-Cancel Orders, and 

auction responses into and from the Exchange. 

Features include the following: (1) Options symbol 

directory messages (e.g., underlying and complex 

instruments); (2) system event messages (e.g., start 

of trading hours messages and start of opening); (3) 

trading action messages (e.g., halts and resumes); (4) 

execution messages; (5) quote messages; (6) 

Immediate-or-Cancel Order messages; (7) risk 

protection triggers and purge notifications; (8) 

opening imbalance messages; (9) auction 

notifications; and (10) auction responses. The SQF 

Purge Interface only receives and notifies of purge 

requests from the Lead Market Maker, SQT or 

RSQT. Lead Market Makers, SQTs and RSQTs may 

only enter interest into SQF in their assigned 

options series. See Options 3, Section 7(a)(i)(B). 

16The term ‘‘badge’’ means an account number, 

which may contain letters and/or numbers, 

assigned to Lead Market Makers and Market 

Makers. A Lead Market Maker or Market Maker 

account may be associated with multiple badges. 

See Options 1, Section 1(b)(6). 

17Phlx currently utilizes a badge without an 

associated options series to designate a Lead Market 

Maker assigned in an options series and a badge 

with an associated options series to designate a 

Market Maker assigned in an option series. 

18The term ‘‘Floor Market Maker’’ is a Market 

Maker who is neither an SQT or an RSQT. A Floor 

Market Maker may provide a quote in open outcry. 

See Options 8, Section 2(a)(8). 

19The term ‘‘Floor Lead Market Maker’’ is a 

member who is registered as an options Lead 

Market Maker pursuant to Options 2, Section 12(a) 

and has a physical presence on the Exchange’s 

trading floor. See Options 8, Section 2(a)(7). 

RSQT is subject to the requirements 

within Options 2, Section 5(c)(2)(C).12

A member organization is required to 

meet each market making obligation 

separately.13 Currently, Options 2, 

Section 5(c) states, ‘‘An SQT and 

RSQT14 who is also the Lead Market 

Maker is held to the Lead Market Maker 

obligations in options series in which 

the Lead Market Maker is assigned and 

will be held to SQT and RSQT 

obligations in all other options series 

where assigned. An SQT or RSQT who 

receives a Directed Order shall be held 

to the standard of a Directed SQT or 

Directed RSQT, as appropriate.’’ 

Today, the Exchange calculates 

whether a member organization that is 

assigned in an options series as both a 

Lead Market Maker and a Market Maker 

has met its quoting obligations as Lead 

Market Maker and Market Maker, 

respectively, by aggregating all quotes 

submitted through the Specialized 

Quote Feed 15 interface from the 

member organization, regardless of 

whether the quote was submitted by the 

member organization in its capacity as 

Lead Market Maker or Market Maker. 

The Exchange proposes to amend its 

calculation to only consider quotes 

submitted through the Specialized 

Quote Feed interface utilizing badges 16

and options series 17 assigned to a Lead 

Market Maker when calculating whether 

a member organization acting as a Lead 

Market Maker has satisfied the 

requirements to provide two-sided 

quotations in 90% of the cumulative 

number of seconds, or such higher 

percentage as Phlx may announce for 

which that member organization’s 

assigned options series are open for 

trading. Similarly, the Exchange 

proposes to only consider quotes 

submitted through the Specialized 

Quote Feed interface utilizing badges 

and option series assigned to a Market 

Maker when calculating whether a 

member organization acting as a Market 

Maker has satisfied the requirements to 

provide two-sided quotations in 60% of 

the cumulative number of seconds, or 

such higher percentage as Phlx may 

announce for which that member 

organization’s assigned options series 

are open for trading. With this proposed 

change, a member organization that is a 

Market Maker (SQT) in an options series 

where the member organization is also 

assigned as the Lead Market Maker in an 

options series will be held to both the 

Lead Market Maker and Market Maker 

(SQT) obligations, pursuant to Options 

2, Section 5(c), separately, in that option 

series. The Exchange will consider 

whether a member organization, acting 

as both Lead Market Maker and Market 

Maker in an assigned options series, has 

complied with each requirement by 

only considering quotes in the 

respective badges. 

The Exchange notes that Floor Market 

Makers 18 and Floor Lead Market 

Makers 19 are not required to quote 

electronically in any designated 

percentage of series pursuant to Options 

8, Section 27(a). Options 8, Section 27(f) 

provides for certain trading 

requirements applicable to Floor Market 

Makers. 

By way of example, 

Current Quoting obligation 

methodology: 

Lead Market Maker firm ABC is 

assigned five badges: 123A, 123B, 123C, 

123D and 123. 

Badge 123 is designated the Lead 

Market Maker badge and badge 123A–D 

are designated as Market Maker badges. 

Today, all quoting activity from all 5 

badges is aggregated in determining if 

Firm 123 [sic] complied with the 

requirement to provide two-sided 

quotations in 90% of the cumulative 

number of seconds for which that 

member organization’s assigned options 

series are open for trading. The higher 

of the two obligations is required today. 

Proposed Quoting obligation 

methodology: 

Lead Market Maker firm ABC is 

assigned five badges: 123A, 123B, 123C, 

123D and 123. 

Badge 123 is designated the Lead 

Market Maker badge and badge 123A–D 

are designated as Market Maker badges. 

As proposed only quoting activity 

from badge 123 (and excluding badges 

123 A–D) would be counted toward the 

requirement to provide two-sided 

quotations in 90% of the cumulative 

number of seconds for which that 

member organization’s assigned options 

series are open for trading. 

All other badges (123 A–D), excluding 

badge 123, would be counted toward the 

requirement to provide two-sided 

quotations in 60% of the cumulative 

number of seconds for which that 

member organization’s assigned options 

series are open for trading. 

A member organization may have 

only one Lead Market Maker badge per 

option series. 

The below example explains how the 

Exchange aggregates quotes from Lead 

Market Makers, in their assigned 

options series, to determine compliance 

with quoting requirements, which will 

not be changing pursuant to this 

proposal. The same calculation applies 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices 38153 

20See Options Regulatory Alert 2021–36. 

21 15 U.S.C. 78f(b). 

22 15 U.S.C. 78f(b)(5). 

23See Options 3, Section 10(a)(1)(B). 

24See Options 7, Pricing Schedule. 

25 In registering as an electronic Market Maker, a 

member organization commits to various 

obligations. Transactions of an electronic Market 

Maker in its market making capacity must 

constitute a course of dealings reasonably 

calculated to contribute to the maintenance of a fair 

and orderly market, and those member 

organizations should not make bids or offers or 

enter into transactions that are inconsistent with 

such course of dealings. Electronic Market Makers 

should not effect purchases or sales except in a 

reasonable and orderly manner. Ordinarily during 

trading hours, an electronic Market Maker must: (1) 

Maintain a two-sided market in those options in 

which the electronic Market Maker is registered to 

trade, in a manner that enhances the depth, 

liquidity and competitiveness of the market. (2) 

Engage, to a reasonable degree under the existing 

circumstances, in dealings for its own account 

when there exists, or it is reasonably anticipated 

that there will exist, a lack of price continuity, a 

temporary disparity between the supply of (or 

demand for) a particular option contract, or a 

temporary distortion of price relationships between 

option contracts of the same class. (3) Compete with 

other electronic Market Makers in all options in all 

capacities in which the electronic Market Maker is 

registered to trade. (4) Make markets that will be 

honored for the number of contracts entered into 

the System in all options in which the electronic 

Market Maker is registered to trade. (5) Update 

quotations in response to changed market 

conditions in all options in which the electronic 

Market Maker is registered to trade. (6) Maintain 

active markets in all options in which the electronic 

Market Maker is registered. (7) Honor all orders 

attributed to the electronic Market Maker that the 

System routes to away markets pursuant to Options 

5, Section 4. 

26See Options 3, Section 10(a)(1)(B). 

27See Options 7, Pricing Schedule. 

28See note 25 above. 

to quotes from Market Makers in their 

assigned options series. 

Under the proposal, and as is the case 

today, by way of example, assume Lead 

Market Maker Firm ABC assigned in 

five symbols across 2 different badges: 

Badge 123 is assigned in symbols 

QQQ and SPY. 

Badge 124 is assigned in symbols 

IBM, GM, and MSFT. 

Quotes submitted through the 

Specialized Quote Feed interface from 

the Firm ABC’s Lead Market Maker 

badges from all 5 symbols will be 

counted in determining compliance 

with Firm ABC’s requirement to provide 

two-sided quotations in 90% of the 

cumulative number of seconds for 

which Firm ABC’s assigned options 

series are open for trading. 

If Firm ABC Lead Market Maker badge 

123 quotes symbol QQQ at 95% and 

SPY at 90% and Firm ABC Lead Market 

Maker badge 124 quotes IBM at 85%, 

GM at 95%, and MSFT at 90% then 

Firm ABC will have met requirement to 

provide two-sided quotations in 90% of 

the cumulative number of seconds for 

which Firm ABC’s assigned options 

series are open for trading because the 

percentage across the 5 symbols is 91%. 

Implementation 

The Exchange proposes to implement 

this rule change on August 2, 2021. The 

Exchange has issued an Options 

Regulatory Alert notifying members and 

member organizations of this change.20

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,21 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,22

in particular, in that it is designed to 

promote just and equitable principles of 

trade and to protect investors and the 

public interest by requiring Lead Market 

Makers and Market Makers to separately 

meet quoting requirements as both a 

Lead Market Maker and Market Maker, 

respectively, when the member 

organization is assigned in both roles in 

an options series. 

The Exchange’s proposal to separately 

calculate Market Maker and Lead 

Market Maker quoting obligations where 

the member organization is assigned as 

both Lead Market Maker and Market 

Maker in an options series is consistent 

with the Act. Specifically, the 

Exchange’s proposal would only 

consider quotes submitted through the 

Specialized Quote Feed interface 

utilizing badges and options series 

assigned to a Lead Market Maker when 

calculating whether a member 

organization acting as a Lead Market 

Maker has satisfied the requirements to 

provide two-sided quotations in 90% of 

the cumulative number of seconds, or 

such higher percentage as Phlx may 

announce for which that member 

organization’s assigned options series 

are open for trading. Similarly, the 

Exchange’s proposal would only 

consider quotes submitted through the 

Specialized Quote Feed interface 

utilizing badges and option series 

assigned to a Market Maker when 

calculating whether a member 

organization acting as a Market Maker 

has satisfied the requirements to 

provide two-sided quotations in 60% of 

the cumulative number of seconds, or 

such higher percentage as Phlx may 

announce for which that member 

organization’s assigned options series 

are open for trading. 

The proposed change for calculating 

the Lead Market Maker requirement 

separate from the Market Maker 

requirement, where a member 

organization is assigned in both roles in 

an options series, would ensure that the 

member organization quotes the 

requisite number of seconds in an 

assigned options series, when acting as 

both Lead Market Maker and Market 

Maker. This would ensure that a 

member organization adds the requisite 

amount of liquidity in that assigned 

options series in exchange for certain 

benefits offered by the Exchange to the 

member organization, such as enhanced 

Lead Market Maker allocation 23 and 

favorable pricing,24 in addition to the 

member organization fulfilling other 

market making obligations specified in 

Options 2, Section 5(a).25

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. Rather, the 

proposal would ensure that member 

organizations that are assigned in an 

options series as both the Lead Market 

Maker and Market Maker, respectively, 

are meeting the same quoting 

obligations as other member 

organizations who are assigned solely as 

either the Lead Market Maker or Market 

Maker in an option series. Also, this 

proposal would ensure that a member 

organization quotes the requisite 

number of seconds in an assigned 

options series, when acting as both Lead 

Market Maker and Market Maker, 

respectively, thereby adding the 

requisite amount of liquidity in 

exchange for certain benefits provided 

by the Exchange such as enhanced Lead 

Market Maker allocation 26 and 

favorable pricing,27 in addition to 

fulfilling its other market making 

obligations specified in Options 2, 

Section 5(a).28

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change 

does not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 


lotter on DSK11XQN23PROD with NOTICES1
38154 Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices 

29 15 U.S.C. 78s(b)(3)(A). 

30 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of its intent to file the 

proposed rule change, along with a brief description 

and text of the proposed rule change, at least five 

business days prior to the date of filing of the 

proposed rule change, or such shorter time as 

designated by the Commission. The Exchange has 

satisfied this requirement. 

31 17 CFR 240.19b–4(f)(6). 

32 17 CFR 240.19b–4(f)(6)(iii). 

33For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 34 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 91521 

(April 9, 2021), 86 FR 19917 (April 15, 2021) 

(‘‘Notice’’). Comments on the proposed rule change 

can be found at: https://www.sec.gov/comments/srcboebzx-2021-024/srcboebzx2021024.htm. 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 92032, 

86 FR 29611 (June 2, 2021). The Commission 

designated July 14, 2021, as the date by which it 

should approve, disapprove, or institute 

proceedings to determine whether to disapprove the 

proposed rule change. 

6 15 U.S.C. 78s(b)(2)(B). 

7See Notice, supra note 3. 

8WisdomTree Digital Commodity Services, LLC 

(‘‘Sponsor’’) is the sponsor of the Trust, and 

19(b)(3)(A) of the Act 29 and Rule 19b– 

4(f)(6) thereunder.30

A proposed rule change filed under 

Rule 19b–4(f)(6) 31 normally does not 

become operative for 30 days after the 

date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii),32 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

upon filing. Waiving the operative delay 

will allow the Exchange to amend, 

without delay, its rules regarding 

Market Maker quoting obligations to 

ensure that member organizations 

assigned in an options series as both the 

Lead Market Maker and Market Maker 

would have the same quoting 

obligations as member organizations 

who are assigned solely as either Lead 

Market Maker or Market Maker in an 

option series. The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest and 

hereby designates the proposed rule 

change to be operative upon filing.33

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

Phlx–2021–38 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2021–38. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549–1090, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–Phlx–2021–38 and should 

be submitted on or before August 9, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.34

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–15195 Filed 7–16–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92392; File No. SR– 

CboeBZX–2021–024] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Order Instituting 

Proceedings To Determine Whether To 

Approve or Disapprove a Proposed 

Rule Change To List and Trade Shares 

of the WisdomTree Bitcoin Trust Under 

BZX Rule 14.11(e)(4), CommodityBased Trust Shares 

July 13, 2021. 

On March 26, 2021, Cboe BZX 

Exchange, Inc. (‘‘BZX’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to list and trade shares 

(‘‘Shares’’) of the WisdomTree Bitcoin 

Trust (‘‘Trust’’) under BZX Rule 

14.11(e)(4), Commodity-Based Trust 

Shares. The proposed rule change was 

published for comment in the Federal 

Register on April 15, 2021.3

On May 26, 2021, pursuant to Section 

19(b)(2) of the Act,4 the Commission 

designated a longer period within which 

to approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether to disapprove the proposed 

rule change.5 This order institutes 

proceedings under Section 19(b)(2)(B) of 

the Act 6 to determine whether to 

approve or disapprove the proposed 

rule change. 

I. Summary of the Proposal 

As described in more detail in the 

Notice,7 the Exchange proposes to list 

and trade the Shares of the Trust under 

BZX Rule 14.11(e)(4), which governs the 

listing and trading of Commodity-Based 

Trust Shares on the Exchange. 

The investment objective of the Trust 

would be to gain exposure to the price 

of bitcoin, less expenses and liabilities 

of the Trust’s operation.8 The Trust 


lotter on DSK11XQN23PROD with NOTICES1